"MSMEs have the potential to become capital in Indonesia's economic development ecosystem," he observed at the 2023 West Java Provincial Government Development Planning Conference, according to an official written statement released here on Tuesday.
MSMEs need to be encouraged to adopt digital technology and enter the digital ecosystem.
As of December 2022, as many as 20.76 million MSMEs have used digital technology in business operations. In 2023, the number of MSMEs utilizing digital technology is targeted to reach 25 million, while in 2024, it is targeted to swell to 30 million.
According to Hartarto, the government is taking comprehensive steps to bolster the MSME and e-commerce ecosystems by providing ease of licensing, fiscal incentives, certification, and digital payment infrastructure; creating a healthy business climate; and protecting personal data.
"The government is preparing a single database for MSMEs that can offer navigation for the empowerment of MSMEs so that it is focused and integrated sustainably," he said.
In the short term, the government is focusing on increasing domestic production to strengthen the domestic market, improving access to People's Business Credit (KUR) for MSMEs, and controlling inflation so that people's purchasing power can be maintained.
In the medium term, the government will continue to make strengthening efforts, including in the tourism sector, by developing Special Economic Zones (SEZs), strengthening the downstreaming of natural and mineral resource-based industries, and encouraging the diversification of export markets.
Then, in the long term, the government is committed to continuously increasing jobs by ensuring ease of doing business, maintaining investment growth, and supporting MSME players to level up through the Government Regulation in Lieu of Law (Perppu) Number 2 of 2022 concerning Job Creation.
"Efforts to transform MSMEs continue to be encouraged by the government. To this end, the strengthening of collaboration between stakeholders is key to making MSMEs level up," he said.
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Translator: Sanya Dinda, Raka Adji
Editor: Rahmad Nasution
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